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38. In State of Kerala and Ors. v. Kerala Rare Earth & Minerals Ltd. & Ors.8, a three-Judge Bench of this Court again dealt with the scope of Section 17A of the Act and per majority held as follows:
“15. There is no gainsaying that the State Government can reserve any area not already held under any prospecting licence or mining lease for undertaking prospecting or mining operations through a government company or corporation owned or controlled by it, but, in terms of sub-section (2) of Section 17-A (supra) where the Government proposes to do so, it shall by notification in the Official Gazette specify the boundaries of such area and the mineral or minerals in respect of which such areas will be reserved. Three distinct requirements emerge from Section 17-A(2) for a valid reservation viz.: 
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“19. The upshot of the above discussion then is that while the State Government is the owner of the mineral deposits in the lands which vest in the Government as is the position in the case at hand, Parliament has by reason of the declaration made in Section 2 of the 1957 Act acquired complete dominion over the legislative field covered by the said legislation.

The Act does not denude the State of the ownership of the minerals situate within its territories but there is no manner of doubt that it regulates to the extent set out in the provisions of the Act the development of mines and minerals in the country. It follows that if the State Government proposes to reserve any area for exploitation by the State-owned corporation or company, it must resort to making of such reservation in terms of Section 17-A with the approval of the Central Government and by a notification specifying boundaries of the area and mineral or minerals in respect of which such areas will be reserved. Inasmuch as the State Government has not so far issued any notification in terms of Section 17-A, the Industrial Policy, 2007 of the Kerala State Government does not have the effect of making a valid reservation within the comprehension of Section 17-A. The High Court was, therefore, justified in holding that there is no valid reservation as at present no matter the Government can make such a reservation if so advised in the manner prescribed by law. In other words, the dismissal of this appeal shall not prevent the State from invoking its right under Section 17-A(2) of the Act by issuing notification in respect of the mineral deposits in question…..”